2000 (4) TMI 437 - AT - Central Excise

Summary

Issues:
Availability of benefit of SSI Exemption Notification No. 175/86 dated 1-3-1986 to the respondents in respect of unbranded goods.

Analysis:
The appellants, engaged in manufacturing plastic jars under TH 8509 of the CETA bearing the brand name "Rallimix," were also producing unbranded goods like plastic caps, rings, lids, and jar-bases. The Assistant Collector denied them the SSI exemption for unbranded goods used in branded products. The Collector (Appeals) reversed this decision, stating that the unbranded goods were not affected by para 7 of Notification 175/86. The Revenue appealed this decision to the Tribunal.

None appeared on behalf of the respondents during the hearing, and the Tribunal proceeded with the appeal. The Revenue argued that unbranded goods used with branded products should not receive the SSI exemption. However, the Tribunal found no substantial evidence supporting this claim.

The Collector (Appeals) provided detailed reasoning for overturning the Assistant Collector's decision, concluding that the unbranded goods were manufactured and cleared independently, without a direct connection to the branded "Rallimix" goods. As a result, the unbranded goods were deemed eligible for the benefit of Notification 175/86. The Tribunal agreed with the Collector (Appeals) and dismissed the Revenue's appeal, finding no grounds for interference.

In conclusion, the Tribunal upheld the Collector (Appeals) decision, ruling in favor of the respondents regarding the availability of the SSI exemption for the unbranded goods manufactured by them.